RIGHTS & OBLIGATIONS OF STOCK BROKERS, SUB-BROKERS & CLIENTS
As prescribed by SEBI and Stock Exchanges
1. The client shall invest/trade in those securities/
contracts/other instruments admitted to dealings on
the Exchanges as defined in the Rules, Bye-Laws and
Regulations of Exchanges/ Securities and Exchange
Board of India (SEBI) and circulars/notices issued
there under from time to time.
2. The stock broker, sub-broker and the client shall be
bound by all the Rules, Bye-Laws and Regulations of
the Exchange and circulars/notices issued there under
and Rules and Regulations of SEBI and relevant
notifications of Government authorities as may be in
force from time to time.
3. The client shall satisfy itself of the capacity of the
stock broker to deal in securities and/or deal in
derivatives contracts and wishes to execute its orders
through the stock broker and the client shall from time
to time continue to satisfy itself of such capability of the
stock broker before executing orders through the stock
broker.
4. The stock broker shall continuously satisfy itself
about the genuineness and financial soundness of the
client and investment objectives relevant to the
services to be provided.
5. The stock broker shall take steps to make the client
aware of the precise nature of the Stock broker’s
liability for business to be conducted, including any
limitations, the liability and the capacity in which the
stock broker acts.
6. The sub-broker shall provide necessary assistance
and co-operate with the stock broker in all its dealings
with the client(s).
CLIENT INFORMATION
7. The client shall furnish all such details in full as are
required by the stock broker in "Account Opening
Form” with supporting details, made mandatory by
stock exchanges/SEBI from time to time.
8. The client shall familiarize himself with all the
mandatory provisions in the Account Opening
documents. Any additional clauses or documents
specified by the stock broker shall be non-mandatory,
as per terms & conditions accepted by the client.
9. The client shall immediately notify the stock broker
in writing if there is any change in the information in the
‘account opening form’ as provided at the time of
account opening and thereafter; including the
information on winding up petition/insolvency petition or
any litigation, which may have material bearing on his
capacity. The client shall provide/update the financial
information to the stock broker on a periodic basis.
10. The stock broker and sub-broker shall maintain all
the details of the client as mentioned in the account
opening form or any other information pertaining to the
client, confidentially and that they shall not disclose the
same to any person/authority except as required under
any law/regulatory requirements. Provided however that
the stock broker may so disclose information about his
client to any person or authority with the express
permission of the client.
MARGINS
11. The client shall pay applicable initial margins,
withholding margins, special margins or such other
margins as are considered necessary by the stock
broker or the Exchange or as may be directed by SEBI
from time to time as applicable to the segment(s) in
which the client trades. The stock broker is permitted in
its sole and absolute discretion to collect additional
margins (even though not required by the Exchange,
Clearing House/Clearing Corporation or SEBI) and the
client shall be obliged to pay such margins within the
stipulated time.
12. The client understands that payment of margins by
the client does not necessarily imply complete
satisfaction of all dues. In spite of consistently having
paid margins, the client may, on the settlement of its
trade, be obliged to pay (or entitled to receive) such
further sums as the contract may dictate/require.
TRANSACTIONS AND SETTLEMENTS
13. The client shall give any order to buy or sell a
security/derivatives contract in writing or in such form or
manner, as may be mutually agreed between the client
and the stock broker. The stock broker shall ensure to
place orders and execute the trades of the client, only in
the Unique Client Code assigned to that client.
14. The stock broker shall inform the client and keep
him apprised about trading/settlement cycles,
delivery/payment schedules, any changes therein from
time to time, and it shall be the responsibility in turn of
the client to comply with such schedules/procedures of
the relevant stock exchange where the trade is
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RIGHTS & OBLIGATIONS OF STOCK BROKERS, SUB-BROKERS & CLIENTS
executed.
15. The stock broker shall ensure that the
money/securities deposited by the client shall be kept
in a separate account, distinct from his/its own account
or account of any other client and shall not be used by
the stock broker for himself/itself or for any other client
or for any purpose other than the purposes mentioned
in Rules, Regulations, circulars, notices, guidelines of
SEBI and/or Rules, Regulations, Bye-Laws, circulars
and notices of Exchange.
16. Where the Exchange(s) cancels trade(s) suo moto
all such trades including the trade/s done on behalf of
the client shall ipso facto stand cancelled, stock broker
shall be entitled to cancel the respective contract(s)
with client(s).
17. The transactions executed on the Exchange are
subject to Rules, Bye-Laws and Regulations and
circulars/notices issued thereunder of the Exchanges
where the trade is executed and all parties to such
trade shall have submitted to the jurisdiction of such
court as may be specified by the Bye-Laws and
Regulations of the Exchanges where the trade is
executed for the purpose of giving effect to the
provisions of the Rules, Bye-Laws and Regulations of
the Exchanges and the circulars/notices issued
thereunder.
BROKERAGE
18. The Client shall pay to the stock broker brokerage
and statutory levies as are prevailing from time to time
and as they apply to the client’s account , transactions
and to the services that stock broker renders to the
Client. The stock broker shall not charge brokerage
more than the maximum brokerage permissible as per
the rules, regulations and bye-laws of the relevant
stock exchanges and/or rules and regulations of SEBI.
LIQUIDATION AND CLOSE OUT OF POSITION
19. Without prejudice to the stock broker's other rights
(including the right to refer a matter to arbitration), the
client understands that the stock broker shall be
entitled to liquidate/close out all or any of the client's
positions for non-payment of margins or other
amounts, outstanding debts, etc. and adjust the
proceeds of such liquidation/close out, if any, against
the client's liabilities/obligations. Any and all losses and
financial charges on account of such liquidation
/closing-out shall be charged to and borne by the client.
20. In the event of death or insolvency of the client or
his/its otherwise becoming incapable of receiving and
paying for or delivering or transferring securities which
the client has ordered to be bought or sold, stock broker
may close out the transaction of the client and claim
losses, if any, against the estate of the client. The client
or his nominees, successors, heirs and assignee shall
be entitled to any surplus which may result there from.
The client shall note that transfer of funds/securities in
favor of a Nominee shall be valid discharge by the stock
broker against the legal heir.
21. The stock broker shall bring to the notice of the
relevant Exchange the information about default in
payment/delivery and related aspects by a client. In
case where defaulting client is a corporate
entity/partnership/proprietary firm or any other artificial
legal entity, then the name(s) of Director(s)/
Promoter(s)/Partner(s)/Proprietor as the case may be,
shall also be communicated by the stock broker to the
relevant Exchange(s).
DISPUTE RESOLUTION
22. The stock broker shall provide the client with the
relevant contact details of the concerned Exchanges
and SEBI.
23. The stock broker shall co-operate in redressing
grievances of the client in respect of all transactions
routed through it and in removing objections for bad
delivery of shares, rectification of bad delivery, etc.
24. The client and the stock broker shall refer any claims
and/or disputes with respect to deposits, margin
money, etc., to arbitration as per the Rules, Bye-Laws
and Regulations of the Exchanges where the trade is
executed and circulars/notices issued thereunder as
may be in force from time to time.
25. The stock broker shall ensure faster settlement of
any arbitration proceedings arising out of the
transactions entered into between him vis-à-vis the
client and he shall be liable to implement the arbitration
awards made in such proceedings.
26. The client/stock-broker understands that the
instructions issued by an authorized representative for
dispute resolution, if any, of the client/stock-broker shall
be binding on the client/stock-broker in accordance
with the letter authorizing the said representative to deal
22
RIGHTS & OBLIGATIONS OF STOCK BROKERS, SUB-BROKERS & CLIENTS
on behalf of the said client/stock-broker.
TERMINATION OF RELATIONSHIP
27. This relationship between the stock broker and the
client shall be terminated; if the stock broker for any
reason ceases to be a member of the stock exchange
including cessation of membership by reason of the
stock broker's default, death, resignation or expulsion
or if the certificate is cancelled by the Board.
28. The stock broker, sub-broker and the client shall be
entitled to terminate the relationship between them
without giving any reasons to the other party, after
giving notice in writing of not less than one month to the
other parties. Notwithstanding any such termination,
all rights, liabilities and obligations of the parties arising
out of or in respect of transactions entered into prior to
the termination of this relationship shall continue to
subsist and vest in/be binding on the respective parties
or his/its respective heirs, executors, administrators,
legal representatives or successors, as the case may
be.
29. In the event of demise/insolvency of the sub-broker
or the cancellation of his/its registration with the Board
or/withdrawal of recognition of the sub-broker by the
stock exchange and/or termination of the agreement
with the sub broker by the stock broker, for any reason
whatsoever, the client shall be informed of such
termination and the client shall be deemed to be the
direct client of the stock broker and all clauses in the
‘Rights and Obligations’ document(s) governing the
stock broker, sub-broker and client shall continue to be
in force as it is, unless the client intimates the stock
broker his/its intention to terminate their relationship by
giving a notice in writing of not less than one month.
ADDITIONAL RIGHTS AND OBLIGATIONS
30. The stock broker shall ensure due protection to the
client regarding client’s rights to dividends, rights or
bonus shares, etc. in respect of transactions routed
through it and it shall not do anything which is likely to
harm the interest of the client with whom and for whom
they may have had transactions in securities.
31. The stock broker and client shall reconcile and
settle their accounts from time to time as per the
Rules, Regulations, Bye-Laws, Circulars, Notices and
Guidelines issued by SEBI and the relevant Exchanges
where the trade is executed.
32. The stock broker shall issue a contract note to his
constituents for trades executed in such format as may
be prescribed by the Exchange from time to time
containing records of all transactions including details
of order number, trade number, trade time, trade price,
trade quantity, details of the derivatives contract, client
code, brokerage, all charges levied etc. and with all
other relevant details as required therein to be filled in
and issued in such manner and within such time as
prescribed by the Exchange. The stock broker shall
send contract notes to the investors within one working
day of the execution of the trades in hard copy and/or in
electronic form using digital signature.
33. The stock broker shall make pay out of funds or
delivery of securities, as the case may be, to the Client
within one working day of receipt of the payout from the
relevant Exchange where the trade is executed unless
otherwise specified by the client and subject to such
terms and conditions as may be prescribed by the
relevant Exchange from time to time where the trade is
executed.
34. The stock broker shall send a complete ’Statement
of Accounts’ or both funds and securities in respect of
each of its clients in such periodicity and format within
such time, as may be prescribed by the relevant
Exchange, from time to time, where the trade is
executed. The Statement shall also state that the client
shall report errors, if any, in the Statement within such
time as may be prescribed by the relevant Exchange
from time to time where the trade was executed, from
the receipt thereof to the Stock broker.
35. The stock broker shall send daily margin statements
to the clients. Daily Margin statement should include,
inter-alia, details of collateral deposited, collateral
utilized and collateral status (available balance/due
from client) with break up in terms of cash, Fixed
Deposit Receipts (FDRs), Bank Guarantee and
securities.
36. The client shall ensure that it has the required legal
capacity to, and is authorized to, enter into the
relationship with stock broker and is capable of
performing his obligations and undertakings hereunder.
All actions required to be taken to ensure compliance of
all the transactions, which the client may enter into shall
be completed by the client prior to such transaction
being entered into.
ELECTRONIC CONTRACT NOTES (ECN)
37. In case, client opts to receive the contract note in
23
RIGHTS & OBLIGATIONS OF STOCK BROKERS, SUB-BROKERS & CLIENTS
electronic form, he shall provide an appropriate e-mail
id to the stock broker. The client shall communicate to
the stock broker any change in the email-id through a
physical letter. If the client has opted for internet
trading, the request for change of email id may be
made through the secured access by way of client
specific user id and password.
38. The stock broker shall ensure that all ECNs sent
through the e-mail shall be digitally signed, encrypted,
non-tamperable and in compliance with the provisions
of the IT Act, 2000. In case, ECN is sent through e-mail
as an attachment, the attached file shall also be
secured with the digital signature, encrypted and
non-tamperable.
39. The client shall note that non-receipt of bounced
mail notification by the stock broker shall amount to
delivery of the contract note at the e-mail ID of the
client.
40. The stock broker shall retain ECN and
acknowledgement of the e-mail in a soft and
non-tamperable form in the manner prescribed by the
exchange in compliance with the provisions of the IT
Act, 2000 and as per the extant rules/regulations/
circulars/guidelines issued by SEBI/Stock Exchanges
from time to time. The proof of delivery i.e., log report
generated by the system at the time of sending the
contract notes shall be maintained by the stock broker
for the specified period under the extant regulations of
SEBI/stock exchanges. The log report shall provide the
details of the contract notes that are not delivered to
the client/e-mails rejected or bounced back. The stock
broker shall take all possible steps to ensure receipt of
notification of bounced mails by him at all times within
the stipulated time period under the extant regulations
of SEBI/stock exchanges.
41. The stock broker shall continue to send contract
notes in the physical mode to such clients who do not
opt to receive the contract notes in the electronic form.
Wherever the ECNs have not been delivered to the
client or has been rejected (bouncing of mails) by the
e-mail ID of the client, the stock broker shall send a
physical contract note to the client within the stipulated
time under the extant regulations of SEBI/stock
exchanges and maintain the proof of delivery of such
physical contract notes.
42. In addition to the e-mail communication of the
ECNs to the client, the stock broker shall
simultaneously publish the ECN on his designated web-
site, if any, in a secured way and enable relevant access
to the clients and for this purpose, shall allot a unique
user name and password to the client, with an option to
the client to save the contract note electronically and/or
take a print out of the same.
LAW AND JURISDICTION
43. In addition to the specific rights set out in this
document, the stock broker, sub-broker and the client
shall be entitled to exercise any other rights, which the
stock broker or the client may have under the Rules,
Bye-Laws and Regulations of the Exchanges in which
the client chooses to trade and circulars/notices issued
thereunder or Rules and Regulations of SEBI.
44. The provisions of this document shall always be
subject to Government notifications, any rules,
regulations, guidelines and circulars/notices issued by
SEBI and Rules, Regulations and Bye-Laws of the
relevant stock exchanges, where the trade is executed,
that may be in force from time to time.
45. The stock broker and the client shall abide by any
award passed by the Arbitrator(s) under the Arbitration
and Conciliation Act, 1996. However, there is also a
provision of appeal within the stock exchanges, if either
party is not satisfied with the arbitration award.
46. Words and expressions which are used in this
document but which are not defined herein shall, unless
the context otherwise requires, have the same meaning
as assigned thereto in the Rules, Bye-Laws and
Regulations and circulars/notices issued thereunder of
the Exchanges/SEBI.
47. All additional voluntary clauses/document added
by the stock broker should not be in contravention with
rules/regulations/notices/circulars of Exchanges/SEBI.
Any changes in such voluntary clauses/document(s)
need to be preceded by a notice of 15 days. Any
changes in the rights and obligations which are
specified by Exchanges/SEBI shall also be brought to
the notice of the clients.
48. If the rights and obligations of the parties hereto are
altered by virtue of change in Rules and regulations of
SEBI or Bye-Laws, Rules and Regulations of the
relevant stock Exchanges where the trade is executed,
such changes shall be deemed to have been
incorporated herein in modification of the rights and
obligations of the parties mentioned in this document.
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RIGHTS & OBLIGATIONS OF STOCK BROKERS, SUB-BROKERS & CLIENTS

INTERNET & WIRELESS TECHNOLOGY BASED

TRADING FACILITY PROVIDED BY STOCK BROKERS TO CLIENT
(All the clauses mentioned in the "Rights and Obligations! document(s) shall be
applicable. Additionally, the clauses mentioned herein shall also be applicable.)
1. Stock broker is eligible for providing Internet based that the password of the client and/or his authorized
trading (IBT) and securities trading through the use of representative are not revealed to any third party
wireless technology that shall include the use of including employees and dealers of the stock broker
devices such as mobile phone, laptop with data card,
6. The Client shall immediately notify the Stock broker in
etc. which use Internet Protocol (IP). The stock broker
writing if he forgets his password, discovers security
shall comply with all requirements applicable to
flaw in Stock Broker’s IBT System, discovers/suspects
internet based trading/securities trading using wireless
discrepancies/unauthorized access through his
technology as may be specified by SEBI & the
username/password/account with full details of such
Exchanges from time to time.
unauthorized use, the date, the manner and the
2. The client is desirous of investing/trading in transactions effected pursuant to such unauthorized
securities and for this purpose, the client is desirous of use, etc.
using either the internet based trading facility or the
7. The Client is fully aware of and understands the risks
facility for securities trading through use of wireless
associated with availing of a service for routing orders
technology. The Stock broker shall provide the Stock
over the internet/securities trading through wireless
broker’s IBT Service to the Client, and the Client shall
technology and Client shall be fully liable and
avail of the Stock broker’s IBT Service, on and subject
responsible for any and all acts done in the Client’s
to SEBI/Exchanges Provisions and the terms and
username/password in any manner whatsoever.
conditions specified on the Stock broker’s IBT Web
Site provided that they are in line with the norms 8. The stock broker shall send the order/trade
prescribed by Exchanges/SEBI. confirmation through email to the client at his request.
The client is aware that the order/ trade confirmation is
3. The stock broker shall bring to the notice of client the
also provided on the web portal. In case client is trading
features, risks, responsibilities, obligations and
using wireless technology, the stock broker shall send
liabilities associated with securities trading through
the order/trade confirmation on the device of the client.
wireless technology/internet/smart order routing or any
other technology should be brought to the notice of the 9. The client is aware that trading over the internet
client by the stock broker. involves many uncertain factors and complex hardware,
software, systems, communication lines, peripherals,
4. The stock broker shall make the client aware that the
etc. are susceptible to interruptions and dislocations.
Stock Broker!s IBT system itself generates the initial
The Stock broker and the Exchange do not make any
password and its password policy as stipulated in line
representation or warranty that the Stock broker’s IBT
with norms prescribed by Exchanges/SEBI.
Service will be available to the Client at all times without
5. The Client shall be responsible for keeping the any interruption.
Username and Password confidential and secure and
10. The Client shall not have any claim against the
shall be solely responsible for all orders entered and
Exchange or the Stock broker on account of any
transactions done by any person whosoever through
suspension, interruption, non-availability or
the Stock broker’s IBT System using the Client’s
malfunctioning of the Stock broker’s IBT System or
Username and/or Password whether or not such
Service or the Exchange’s service or systems or non
person was authorized to do so. Also the client is aware
execution of his orders due to any link/system failure at
that authentication technologies and strict security
the Client/Stock brokers/Exchange end for any reason
measures are required for the internet
beyond the control of the stock broker/Exchanges.
trading/securities trading through wireless technology
through order routed system and undertakes to ensure

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 RISK DISCLOSURE DOCUMENT
RISK DISCLOSURE DOCUMENT FOR CAPITAL MARKET/CASH
SEGMENT AND FUTURES & OPTIONS SEGMENT
(To be given by the broker to the client )
This document contains important information on your fulfilling certain formalities set out by the member,
trading in Equities/Derivatives Segments of the stock which may interalia include your filling the know your
exchanges. All prospective constituents should read client form, client registration form, execution of an
this document before trading on Capital Market/Cash agreement, etc., and are subject to the rules, bye-laws
Segment or F&O or MF segment of the Exchanges. and regulations of NSE/BSE and its Clearing
Corporation, guidelines prescribed by SEBI and in force
NSE/BSE/SEBI does, neither singly or jointly, and
from time to time and circulars as may be issued by
expressly nor impliedly, guarantee nor make any
NSE/BSE or its Clearing Corporation/Clearing House
representation concerning the completeness, the
and in force from time to time.
adequacy or accuracy of this disclosure document nor
has NSE/BSE/SEBI endorsed or passed any merits of NSE/BSE does not provide or purport to provide any
participating in the trading segments. This brief advice and shall not be liable to any person who enters
statement does not disclose all the risks and other into any business relationship with any trading member
significant aspects of trading. and/or sub-broker of NSE/BSE and/or any third party
based on any information contained in this document.
In the light of the risks involved, you should undertake
Any information contained in this document must not be
transactions only if you understand the nature of the
construed as business advice/investment advice. No
contractual relationship into which you are entering
consideration to trade should be made without
and the extent of your exposure to risk.
thoroughly understanding and reviewing the risks
You must know and appreciate that investment in involved in such trading. If you are unsure, you must
Equity shares, Mutual Funds, derivative or other seek professional advice on the same.
instruments traded on the Stock Exchange(s), which
In considering whether to trade or authorize someone to
have varying element of risk, is generally not an
trade for you, you should be aware of or must get
appropriate avenue for someone of limited
acquainted with the following:
resources/limited investment and/or trading
experience and low risk tolerance. You should 1. Basic risks involved in trading on the Stock
therefore carefully consider whether such trading is Exchange
suitable for you in the light of your financial condition. In
1.1 Risk of higher volatility: Volatility refers to the
case you trade on NSE or BSE and suffer adverse
dynamic changes in price that securities undergo when
consequences or loss, you shall be solely responsible
trading activity continues on the Stock Exchange.
for the same and NSE or BSE, its Clearing Corporation/
Generally, higher the volatility of a security/F&O
Clearing House and/or SEBI shall not be responsible,
contract, greater are its price swings. There may be
in any manner whatsoever, for the same and it will not
normally greater volatility in thinly traded securities/ F&O
be open for you to take a plea that no adequate
contract than in active securities/F&O contract. As a
disclosure regarding the risks involved was made or
result of volatility, your order may only be partially
that you were not explained the full risk involved by the
executed or not executed at all, or the price at which
concerned member. The constituent shall be solely
your order got executed may be substantially different
responsible for the consequences and no contract can
from the last traded price or change substantially
be rescinded on that account. You must acknowledge
thereafter, resulting in notional or real losses.
and accept that there can be no guarantee of profits or
no exception from losses while executing orders for 1.2 Risk of lower liquidity: Liquidity refers to the ability
purchase and/or sale of a security or derivative being of market participants to buy and/or sell securities
traded on NSE/BSE. expeditiously at a competitive price and with minimal
price difference. Generally, it is assumed that more the
It must be clearly understood by you that your dealings
numbers of orders available in a market, greater is the
on NSE/BSE through a member, shall be subject to

26
 RISK DISCLOSURE DOCUMENT
liquidity. Liquidity is important because with greater
liquidity, it is easier for investors to buy and/or sell
securities swiftly and with minimal price difference, and
as a result, investors are more likely to pay or receive a
competitive price for securities purchased or sold.
There may be a risk of lower liquidity in some securities
as compared to active securities. As a result, your
order may only be partially executed, or may be
executed with relatively greater price difference or may
not be executed at all.
a) Buying/selling without intention of giving and/or
taking delivery of a security, as part of a day trading
strategy, may also result into losses, because in such a
situation, stocks may have to be sold/purchased at a
low/high prices, compared to the expected price
levels, so as not to have any obligation to deliver/
receive a security.
1.3 Risk of wider spreads: Spread refers to the
difference in best buy price and best sell price. It
represents the differential between the price of buying
a security and immediately selling it or vice versa.
Lower liquidity and higher volatility may result in wider
than normal spreads for less liquid or illiquid securities.
This in turn will hamper better price formation.
1.4 Risk-reducing orders: Most Exchanges have a
facility for investors to place "limit orders", "stop loss
orders" etc". The placing of such orders (e.g., "stop
loss" orders, or "limit" orders), which are intended to
limit losses to certain amounts may not be effective
many a time because rapid movement in market
conditions may make it impossible to execute such
orders.
a) A "market" order will be executed promptly, subject
to availability of orders on opposite side, without
regard to price and that, while the customer may
receive a prompt execution of a "market" order, the
execution may be at available prices of outstanding
orders, which satisfy the order quantity, on price time
priority. It may be understood that these prices may be
significantly different from the last traded price or the
best price in that security.
b) A "limit" order will be executed only at the "limit"
price specified for the order or a better price. However,
while the customer receives price protection, there is a
possibility that the order may not be executed at all.
c) A stop loss order is generally placed "away" from the
current price of a stock, and such order gets activated if
and when the stock reaches, or trades through, the stop
price. Sell stop orders are entered ordinarily below the
current price, and buy stop orders are entered ordinarily
above the current price. When the stock contract
reaches the pre-determined price, or trades through
such price, the stop loss order converts to a market limit
order and is executed at the limit or better. There is no
assurance therefore that the limit order will be
executable, since a stock might penetrate the pre-
determined price, in which case, the risk of such order
not getting executed arises, just as with a regular limit
order.
1.5 Risk of news announcements: Issuers make news
announcements that may impact the price of the
securities. These announcements may occur during
trading, and when combined with lower liquidity and
higher volatility, may suddenly cause an unexpected
positive or negative movement in the price of the
security.
1.6 Risk of rumours : Rumours about companies at
times float in the market through word of mouth,
newspapers, websites or news agencies, etc. The
investors should be wary of and should desist from
acting on rumours.
1.7 System risk: High volume trading will frequently
occur at the market opening and before market close.
Such high volumes may also occur at any point in the
day. These may cause delays in order execution or
confirmation.
a) During periods of volatility, on account of market
participants continuously modifying their order quantity
or prices or placing fresh orders, there may be delays in
order execution and its confirmations.
b) Under certain market conditions, it may be difficult
or impossible to liquidate a position in the market at a
reasonable price or at all, when there are no outstanding
orders either on the buy side or the sell side, or if trading
is halted in a security due to any action on account of
unusual trading activity or stock hitting circuit filters or
for any other reason.
1.8 System/Network Congestion: Trading on
NSE/BSE is in electronic mode, based on
satellite/leased line based communications,
27
 RISK DISCLOSURE DOCUMENT
combination of technologies and computer systems to
place and route orders. Thus, there exists a possibility
of communication failure or system problems or slow
or delayed response from system or trading halt, or any
such other problem/glitch whereby not being able to
establish access to the trading system/network, which
may be beyond the control of and may result in delay in
processing or not processing buy or sell orders either
in part or in full. You are cautioned to note that although
these problems may be temporary in nature, but when
you have outstanding open positions or unexecuted
orders, these represent a risk because of your
obligations to settle all executed transactions.
2. As far as futures and options segment is
concerned, please note and get yourself
acquainted with the following additional features:
2.1 Effect of "leverage" or "gearing" : The amount of
margin is small relative to the value of the derivatives
contract so the transactions are 'leveraged' or 'geared'.
Derivatives trading, which is conducted with a relatively
small amount of margin, provides the possibility of
great profit or loss in comparison with the principal
investment amount. But transactions in derivatives
carry a high degree of risk.
You should therefore completely understand the
following statements before actually trading in
derivatives trading and also trade with caution while
taking into account one's circumstances, financial
resources, etc. If the prices move against you, you may
lose a part of or whole margin equivalent to the
principal investment amount in a relatively short period
of time. Moreover, the loss may exceed the original
margin amount.
a) Futures trading involves daily settlement of all
positions. Every day the open positions are marked to
market based on the closing level of the index. If the
index has moved against you, you will be required to
deposit the amount of loss (notional) resulting from
such movement. This margin will have to be paid within
a stipulated time frame, generally before
commencement of trading the next day.
b) If you fail to deposit the additional margin by the
deadline or if an outstanding debt occurs in your
account, the broker/member may liquidate a part of or
the whole position or substitute securities. In this case,
you will be liable for any losses incurred due to such
close-outs.
c) Under certain market conditions, an investor may
find it difficult or impossible to execute transactions. For
example, this situation can occur due to factors such as
illiquidity i.e. when there are insufficient bids or offers or
suspension of trading due to price limit or circuit
breakers etc.
d) In order to maintain market stability, the following
steps may be adopted: changes in the margin rate,
increase in the cash margin rate or others. These new
measures may also be applied to the existing open
interests. In such conditions, you will be required to put
up additional margins or reduce your positions.
e) You must ask your broker to provide the full details of
the derivatives contracts you plan to trade i.e. the
contract specifications and the associated obligations.
2.2 Currency specific risks
a) The profit or loss in transactions in foreign currency-
denominated contracts, whether they are traded in your
own or another jurisdiction, will be affected by
fluctuations in currency rates, where there is a need to
convert from the currency denomination of the contract
to another currency.
b) Under certain market conditions, you may find it
difficult or impossible to liquidate a position. This can
occur, for example when a currency is deregulated or
fixed trading bands are widened.
c) Currency prices are highly volatile. Price
movements for currencies are influenced by, among
other things changing: supply-demand relationships,
trade, fiscal, monetary, exchange control programs and
policies of governments, foreign political and economic
events and policies; changes in national and
international interest rates and inflation; currency
devaluation; and sentiment of the market place. None of
these factors can be controlled by any individual advisor
and no assurance can be given that an advisor's advice
will result in profitable trades for a participating
customer or that a customer will not incur losses from
such events.
2.3 Risk of option holders:
a) An option holder runs the risk of losing the entire
amount paid for the option in a relatively short period of
28
 RISK DISCLOSURE DOCUMENT
time. This risk reflects the nature of an option as a
wasting asset, which becomes worthless when it
expires. An option holder, who neither sells his option in
the secondary market nor exercises it prior to its
expiration, will necessarily lose his entire investment in
the option. If the price of the underlying does not
change in the anticipated direction before the option
expires to an extent sufficient to cover the cost of the
option, the investor may lose all or a significant part of
his investment in the option.
b) The Exchange may impose exercise restrictions
and have absolute authority to restrict the exercise of
options at certain times in specified circumstances.
2.4 Risks of option writers:
a) If the price movement of the underlying is not in the
anticipated direction, the option writer runs the risks of
losing substantial amount.
b) The risk of being an option writer may be reduced
by the purchase of other options on the same
underlying interest and thereby assuming a spread
position or by acquiring other types of hedging
positions in the options markets or other markets.
However, even where the writer has assumed a spread
or other hedging position, the risks may still be
significant. A spread position is not necessarily less
risky than a simple 'long' or 'short' position.
c) Transactions that involve buying and writing multiple
options in combination, or buying or writing options in
combination with buying or selling short the underlying
interests, present additional risks to investors.
Combination transactions, such as option spreads, are
more complex than buying or writing a single option.
And it should be further noted that, as in any area of
investing, a complexity not well understood is, in itself, a
risk factor. While this is not to suggest that combination
strategies should not be considered, it is advisable, as
is the case with all investments in options, to consult
someone, who is experienced and knowledgeable with
respect to the risks and potential rewards of
combination transactions under various market
circumstances.
3. General:
3.1 The term 'econstituent' shall mean and include a
client, a customer or an investor, who deals with a stock
broker for the purpose of acquiring and/or selling of
securities / derivatives contracts through the
mechanism provided by the Exchanges.
3.2 The term 'stock broker' shall mean and include a
stock broker, a broker or a stock broker, who has been
admitted as such by the Exchanges and who holds a
registration certificate from SEBI.
29
 GUIDANCE NOTE
DO's AND DON'Ts FOR TRADING ON THE EXCHANGE(S) FOR INVESTORS
BEFORE YOU BEGIN TO TRADE
1. Ensure that you deal with and through only SEBI
registered intermediaries. You may check their SEBI
registration certificate number from the list available on
www.nseindia. com, www.bseindia .com and
www.sebi.gov.in.
2. Ensure that you fill the KYC form completely and
strike off the blank fields in the KYC form.
3. Ensure that you have read all the mandatory
documents viz. Rights and Obligations, Risk
Disclosure Document, Policy and Procedure
document of the stock broker.
4. Ensure to read, understand and then sign the
voluntary clauses, if any, agreed between you and the
stock broker. Note that the clauses as agreed between
you and the stock broker cannot be changed without
your consent.
5. Get a clear idea about all brokerage, commissions,
fees and other charges levied by the broker on you for
trading and the relevant provisions/ guidelines
specified by SEBI/Stock exchanges.
6. Obtain a copy of all the documents executed by
you from the stock broker free of charge.
7. In case you wish to execute Power of Attorney
(POA) in favour of the Stock broker, authorizing it to
operate your bank and demat account, please refer to
the guidelines issued by SEBI/Exchanges in this
regard.
TRANSACTIONS AND SETTLEMENTS
8. The stock broker may issue electronic contract
notes (ECN) if specifically authorized by you in writing.
You should provide your email id to the stock broker for
the same. Don't opt for ECN if you are not familiar with
computers.
9. Don't share your internet trading account's
password with anyone.
10. Don't make any payment in cash to the stock
broker.
11. Make the payments by account payee cheque in
favour of the stock broker. Don't issue cheques in the
name of subbroker. Ensure that you have a
documentary proof of your payment/deposit of
securities with the stock broker, stating date, scrip,
quantity, towards which bank/ demat account such
money or securities deposited and from which bank/
demat account.
12. Note that facility of Trade Verification is available on
stock exchanges' websites, where details of trade as
mentioned in the contract note may be verified. Where
trade details on the website do not tally with the details
mentioned in the contract note, immediately get in touch
with the Investors Grievance Cell of the relevant Stock
exchange.
13. In case you have given specific authorization for
maintaining running account, payout of funds or
delivery of securities (as the case may be), may not be
made to you within one working day from the receipt of
payout from the Exchange. Thus, the stock broker shall
maintain running account for you subject to the
following conditions:
a) Such authorization from you shall be dated, signed
by you only and contains the clause that you may revoke
the same at any time.
b) The actual settlement of funds and securities shall
be done by the stock broker, at least once in a calendar
quarter or month, depending on your preference. While
settling the account, the stock broker shall send to you a
'statement of accounts' containing an extract from the
client ledger for funds and an extract from the register of
securities displaying all the receipts/deliveries of funds
and securities. The statement shall also explain the
retention of funds and securities and the details of the
pledged shares, if any.
c) On the date of settlement, the stock broker may
retain the requisite securities/funds towards
outstanding obligations and may also retain the funds
expected to be required to meet derivatives margin
obligations for next 5 trading days, calculated in the
manner specified by the exchanges. In respect of cash
market transactions, the stock broker may retain entire
pay-in obligation of funds and securities due from
30
 GUIDANCE NOTE
clients as on date of settlement and for next day's
business, he may retain funds/securities/margin to the
extent of value of transactions executed on the day of
such settlement in the cash market.
d) You need to bring any dispute arising from the
statement of account or settlement so made to the
notice of the stock broker in writing preferably within 7
(seven) working days from the date of receipt of
funds/securities or statement, as the case may be. In
case of dispute, refer the matter in writing to the
Investors Grievance Cell of the relevant Stock
exchanges without delay.
14. In case you have not opted for maintaining running
account and pay-out of funds/securities is not received
on the next working day of the receipt of payout from
the exchanges, please refer the matter to the stock
broker. In case there is dispute, ensure that you lodge a
complaint in writing immediately with the Investors
Grievance Cell of the relevant Stock exchange.
15. Please register your mobile number and email id
with the stock broker, to receive trade confirmation
alerts/details of the transactions through SMS or email,
by the end of the trading day, from the stock
exchanges.
IN CASE OF TERMINATION OF TRADING
MEMBERSHIP
16. In case, a stock broker surrenders his
membership, is expelled from membership or
declared a defaulter; Stock exchanges gives a public
notice inviting claims relating to only the "transactions
executed on the trading system" of Stock exchange,
from the investors. Ensure that you lodge a claim with
the relevant Stock exchanges within the stipulated
period and with the supporting documents.
17. Familiarize yourself with the protection accorded to
the money and/or securities you may deposit with your
stock broker, particularly in the event of a default or the
stock broker's insolvency or bankruptcy and the extent
to which you may recover such money and/or securities
may be governed by the Bye-Laws and Regulations of
the relevant Stock exchange where the trade was
executed and the scheme of the Investors' Protection
Fund in force from time to time.
DISPUTES/ COMPLAINTS
18. Please note that the details of the arbitration
proceedings, penal action against the brokers and
investor complaints against the stock brokers are
displayed on the website of the relevant Stock
exchange.
19. In case your issue/problem/grievance is not being
sorted out by concerned stock broker/sub-broker then
you may take up the matter with the concerned Stock
exchange. If you are not satisfied with the resolution of
your complaint then you can escalate the matter to
SEBI.
20. Note that all the stock broker/sub-brokers have
been mandated by SEBI to designate an e-mail ID of the
grievance redressal division/compliance officer
exclusively for the purpose of registering complaints.
31
 MANDATORY DOCUMENT
POLICIES AND PROCEDURES
This document is a mandatory document from member/broker (and not from SEBI/Exchange) and requires
your utmost care, attention and understanding. This is an additional requirement from Member/Broker which if
contravenes any rules, regulations, articles, bye-laws, circulars, directives and guidelines of SEBI and
Exchanges shall be null and void.
1. Setting up of client!s exposure limit: The client's
combined limit for Capital and Derivatives market, is
fixed as per the available Ledger balance and in line
with respective client's trade history/experience.
Further, Client's Ledger Credit balance, Securities hold
in Beneficiary Account, POA stock as well as margin
account etc. shall also be considered. The limit can be
increased/decreased at broker's/members sole
discretion.
2. Refusal of orders for dealing in penny stocks:
Generally, the broker warns clients to transact into any
penny stocks as trading in such scripts is very risky.
The client is also required to adhere to exchange/
members guidelines and take due diligence while
trading in such scripts. As such, we the broker, do
hereby warn the client not to deal in any penny stocks.
However, we at our sole discretion may allow or
disallow the clients (on case to case basis) to deal in
penny stocks, subject to rules, regulation, articles, bye-
laws, circulars, directives and guidelines of SEBI and
Exchanges as well as considering the prevalent market
and other circumstances and RMS policy, at a related
point of time.
3. Applicable brokerage rate: I am/We are aware that
the broker shall charge brokerage at the rate being
mutually agreed between us and the broker, or with any
of their authorised persons of branches or their sub-
brokers.
I am/We are aware that the brokerage rates shall be
based on prevailing market circumstances and are
subject to change from time to time. The brokerage
rate shall get documented under necessary annexure
and stored into your system. However, it shall not be
more than the maximum permissible limit (presently
not to exceed 2.5%) as may be prescribed by
SEBI/Exchanges from time to time. (in case of any
upward revision of brokerage rate, member will give a
prior notice of 15 days.)
4. Imposition of penalty/delayed payment charges
by either party specifying the rate and period: I
am/We are aware and agree that pay-in of Securities or
Funds are required to be delivered / made to you on
T+2 days in case of shares and T+1 days in case of
units, if mutual funds. In case of any default or if any
amount is overdue from me/us over such period as may
be allowed by you, either party may charge
penalty/delay payment charges @ 1.50% p.m.
However, I am/ We are aware and specifically agree that
this is just an additional/ ad-hoc facility and shall not be
construed/ resulted into permanent practice leading to
funding by broker in contravention of applicable laws.
5. Right to sell off client's securities or close client's
positions, without giving notice to the client on
account of non payment of clients dues: I/We also
agree and confirm that in case of any delay (beyond
permissible time limit as per SEBI's or Exchange's rules,
regulations, bye-laws, circulars and other applicable
laws/ provisions) or in-ordinate delay in making the
payment or clearance of or meeting up of my/our
obligations, dues, debit balances, margin, MTOM debit
balance etc. open positions might be squared-off,
credit balances of securities or securities lying with you
might be sold off, credit balance of funds might be
adjusted against my/our obligation, debit balances or
liabilities WITHOUT ANY NOTICE from your side or as
per your RMS policy from time to time.
6. Shortages in obligation arising out of internal
netting of trades: Clients are required to make
Securities/ Funds pay-in on T+2 day for shares and
T+1 day in case of Mutual Fund units. In case of default
in security pay-in by the client and the shortage is at
member level i.e. internal shortage, a penalty as
applicable from time to time, will be imposed on the
defaulting client and the benefit will be passed on to the
respective beneficiary client. Rate of penalty will be
decided by member as applicable from time to time and
published on our website.
In case of default of securities, pay-in by the client and
the shortage is vis-a vis the Exchange, auction value of
the respective exchanges and all levies, as applicable,
shall be recovered from the defaulting client.
Client hereby agrees that if he / she / it has short
delivered any securities against his / her / its pay in
obligation which resulted into internal shortage i.e.
32
 MANDATORY DOCUMENT
adjusted against buy position of another client of the
stock broker and couldn’t be auctioned in the market
then the settlement shall take place in any of the
following manner
i) Furnishing the sell obligation to BSE for auction as an
internal Shortage through the self auction route of BSE
for the shortage on any exchange.
ii) Buying the securities from open market for the
delivery to purchasing client and debiting the cost of
purchases along with brokerage and other charges to
your account.
iii) Closing out the shortage by debiting an amount
equivalent to the sell proceeds plus 10% and passing
on this amount to the credit of purchasing client.
iv) Any other method acceptable to us and the
purchaser which is not explicitly disallowed under any
acts, rules by laws, regulations, circulars, notifications
etc. issued by SEBI Exchanges or any other regulatory
authority.
7. Restrictions/prohibition to take further position
or broker may close existing position: Under any
circumstances, such as, in case the client fails to meet
his/her/its pay-in or margin obligations or clear the
outstanding/debit balance with broker, before
permissible time limit or beyond such period, as may
be allowed by broker as per its RMS policy, the client
may not be permitted to take any fresh or further
position until the clearance of earlier dues, obligation,
outstanding etc. Even, broker can firstly set-off or
adjust the payment or securities towards various dues
and obligation of the client and until the full clearance
of the same, shall not allow taking further position.
In case of any delay or failure in meeting any obligation,
margin requirements etc. from client side, broker might
close the existing position or open position without any
further intimation to the client as per the RMS policy.
Such circumstances may include (but not limited to):
1. Failure to meet pay-in obligation on T+2 day/ T+1,
2. Delay in meeting the pay-in or margin requirement,
3. Delay or failure in clearance of outstanding or dues
to the broker,
4. Returning or frequent returning of cheques of the
client,
5. Unnecessary/ unwarranted dispute from client
without any substantial cause/reason,
6. Client's attitude of not coming to an amicable
settlement for any dispute that can be settled without
involvement of Exchange and/or SEBI,
7. As per prevalent RMS policy of the broker,
8. Any direction from SEBI/Exchange or such other
authorities,
9. Under such other circumstances as the broker might
think just and proper on case to case basis.
8. Temporarily suspending or closing the client's
account at the client's request : The broker and/or
client may suspend client's account from further dealing
in the securities market through the broker as per client's
prior written request submitted to broker at its Surat H.O.
duly acknowledged by broker (subject to clearance of
entire outstanding/ obligations).
9. Deregistering a client: Dormant or in-active status
of a client account beyond specified time limit as may
be prescribed by the broker, or under any
circumstances mentioned in (1) to (9) above can tend to
deregistration.
10. Policy for dormant/in-active account: As per
broker's RMS policy, the account in which no
transactions have taken place during the period of last
12 months, the same shall be considered as dormant or
in-active account.
Such a transaction shall mean and include the
following, whichever is later:
1. Entry related to contract or bill generation to buy/sell
transaction
2. Entry related to the payment of funds or securities by
the client
In case broker treats the account of client as a
dormant/in-active account, the funds or securities lying
with the broker shall be refunded/ returned to clients
immediately on demand by the client.
In order to reactivate the account, client needs to
instruct the broker in writing at its Surat H.O. The broker
will try to promptly reactivate the said account. Such
written request may also be sent by fax on 0261
3985880 or by e-mail to Compliance Department on
compliance_cdsl@njgroup.in from client's own e-mail
account registered with the broker. However, the broker
may, at its own discretion, waive/ reduce the period of 2
days as the circumstances may warrant, on case to
case basis.
33
 Rights and Obligations of Beneficial Owner and Depository Participant as
prescribed by SEBI and Depositories
General Clause

1. The Beneficial Owner and the Depository participant (DP) shall be bound by the
provisions of the Depositories Act, 1996, SEBI (Depositories and Participants)
Regulations, 1996, Rules and Regulations of Securities and Exchange Board of India
(SEBI), Circulars/Notifications/Guidelines issued there under, Bye Laws and Business
Rules/Operating Instructions issued by the Depositories and relevant notifications of
Government Authorities as may be in force from time to time.

2. The DP shall open/activate demat account of a beneficial owner in the depository system
only after receipt of complete Account opening form, KYC and supporting documents as
specified by SEBI from time to time.

Beneficial Owner information

3. The DP shall maintain all the details of the beneficial owner(s) as mentioned in the
account opening form, supporting documents submitted by them and/or any other
information pertaining to the beneficial owner confidentially and shall not disclose the
same to any person except as required by any statutory, legal or regulatory authority in
this regard.

4. The Beneficial Owner shall immediately notify the DP in writing, if there is any change
in details provided in the account opening form as submitted to the DP at the time of
opening the demat account or furnished to the DP from time to time.

Fees/Charges/Tariff

5. The Beneficial Owner shall pay such charges to the DP for the purpose of holding and
transfer of securities in dematerialized form and for availing depository services as may
be agreed to from time to time between the DP and the Beneficial Owner as set out in the
Tariff Sheet provided by the DP. It may be informed to the Beneficial Owner that "no
charges are payable for opening of demat accounts”

6. In case of Basic Services Demat Accounts, the DP shall adhere to the charge structure as
laid down under the relevant SEBI and/or Depository circulars/directions/notifications
issued from time to time.

7. The DP shall not increase any charges/tariff agreed upon unless it has given a notice in
writing of not less than thirty days to the Beneficial Owner regarding the same.

Dematerialization

8. The Beneficial Owner shall have the right to get the securities, which have been admitted
on the Depositories, dematerialized in the form and manner laid down under the Bye
Laws, Business Rules and Operating Instructions of the depositories.

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Separate Accounts

9. The DP shall open separate accounts in the name of each of the beneficial owners and
securities of each beneficial owner shall be segregated and shall not be mixed up with the
securities of other beneficial owners and/or DP’s own securities held in dematerialized
form.

10. The DP shall not facilitate the Beneficial Owner to create or permit any pledge and /or
hypothecation or any other interest or encumbrance over all or any of such securities
submitted for dematerialization and/or held in demat account except in the form and
manner prescribed in the Depositories Act, 1996, SEBI (Depositories and Participants)
Regulations, 1996 and Bye-Laws/Operating Instructions/Business Rules of the
Depositories.

Transfer of Securities

11. The DP shall effect transfer to and from the demat accounts of the Beneficial Owner only
on the basis of an order, instruction, direction or mandate duly authorized by the
Beneficial Owner and the DP shall maintain the original documents and the audit trail of
such authorizations.

12. The Beneficial Owner reserves the right to give standing instructions with regard to the
crediting of securities in his demat account and the DP shall act according to such
instructions.

Statement of account

13. The DP shall provide statements of accounts to the beneficial owner in such form and
manner and at such time as agreed with the Beneficial Owner and as specified by
SEBI/depository in this regard.

14. However, if there is no transaction in the demat account, or if the balance has become Nil
during the year, the DP shall send one physical statement of holding annually to such BOs
and shall resume sending the transaction statement as and when there is a transaction in
the account.

15. The DP may provide the services of issuing the statement of demat accounts in an
electronic mode if the Beneficial Owner so desires. The DP will furnish to the Beneficial
Owner the statement of demat accounts under its digital signature, as governed under the
Information Technology Act, 2000. However if the DP does not have the facility of
providing the statement of demat account in the electronic mode, then the Participant
shall be obliged to forward the statement of demat accounts in physical form.

16. In case of Basic Services Demat Accounts, the DP shall send the transaction statements as
mandated by SEBI and/or Depository from time to time.

Manner of Closure of Demat account

17. The DP shall have the right to close the demat account of the Beneficial Owner, for any
reasons whatsoever, provided the DP has given a notice in writing of not less than thirty
days to the Beneficial Owner as well as to the Depository. Similarly, the Beneficial
Owner shall have the right to close his/her demat account held with the DP provided no

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 charges are payable by him/her to the DP. In such an event, the Beneficial Owner shall
specify whether the balances in their demat account should be transferred to another
demat account of the Beneficial Owner held with another DP or to rematerialize the
security balances held.

18. Based on the instructions of the Beneficial Owner, the DP shall initiate the procedure for
transferring such security balances or rematerialize such security balances within a period
of thirty days as per procedure specified from time to time by the depository. Provided
further, closure of demat account shall not affect the rights, liabilities and obligations of
either the Beneficial Owner or the DP and shall continue to bind the parties to their
satisfactory completion.

Default in payment of charges

19. In event of Beneficial Owner committing a default in the payment of any amount
provided in Clause 5 & 6 within a period of thirty days from the date of demand, without
prejudice to the right of the DP to close the demat account of the Beneficial Owner, the
DP may charge interest at a rate as specified by the Depository from time to time for the
period of such default.

20. In case the Beneficial Owner has failed to make the payment of any of the amounts as
provided in Clause 5&6 specified above, the DP after giving two days notice to the
Beneficial Owner shall have the right to stop processing of instructions of the Beneficial
Owner till such time he makes the payment along with interest, if any.

Liability of the Depository

21. As per Section 16 of Depositories Act, 1996,

1. Without prejudice to the provisions of any other law for the time being in force,
any loss caused to the beneficial owner due to the negligence of the depository or
the participant, the depository shall indemnify such beneficial owner.

2. Where the loss due to the negligence of the participant under Clause (1) above, is
indemnified by the depository, the depository shall have the right to recover the
same from such participant.

Freezing/ Defreezing of accounts

22. The Beneficial Owner may exercise the right to freeze/defreeze his/her demat account
maintained with the DP in accordance with the procedure and subject to the restrictions
laid down under the Bye Laws and Business Rules/Operating Instructions.

23. The DP or the Depository shall have the right to freeze/defreeze the accounts of the
Beneficial Owners on receipt of instructions received from any regulator or court or any
statutory authority.

Redressal of Investor grievance

24. The DP shall redress all grievances of the Beneficial Owner against the DP within a
period of thirty days from the date of receipt of the complaint.

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Authorized representative

25. If the Beneficial Owner is a body corporate or a legal entity, it shall, along with the
account opening form, furnish to the DP, a list of officials authorized by it, who shall
represent and interact on its behalf with the Participant. Any change in such list including
additions, deletions or alterations thereto shall be forthwith communicated to the
Participant.

Law and Jurisdiction

26. In addition to the specific rights set out in this document, the DP and the Beneficial owner
shall be entitled to exercise any other rights which the DP or the Beneficial Owner may
have under the Rules, Bye Laws and Regulations of the respective Depository in which
the demat account is opened and circulars/notices issued there under or Rules and
Regulations of SEBI.

27. The provisions of this document shall always be subject to Government notification, any
rules, regulations, guidelines and circulars/ notices issued by SEBI and Rules,
Regulations and Bye-laws of the relevant Depository, where the Beneficial Owner
maintains his/ her account, that may be in force from time to time.

28. The Beneficial Owner and the DP shall abide by the arbitration and conciliation
procedure prescribed under the Bye-laws of the depository and that such procedure shall
be applicable to any disputes between the DP and the Beneficial Owner.

29. Words and expressions which are used in this document but which are not defined herein
shall unless the context otherwise requires, have the same meanings as assigned thereto in
the Rules, Bye-laws and Regulations and circulars/notices issued there under by the
depository and /or SEBI

30. Any changes in the rights and obligations which are specified by SEBI/Depositories shall
also be brought to the notice of the clients at once.

31. If the rights and obligations of the parties hereto are altered by virtue of change in Rules
and regulations of SEBI or Bye-laws, Rules and Regulations of the relevant Depository,
where the Beneficial Owner maintains his/her account, such changes shall be deemed to
have been incorporated herein in modification of the rights and obligations of the parties
mentioned in this document.

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